(Ecofin Agency) - The International Finance Corporation (IFC) has committed to make an equity investment of R150 million ($10 million) in the South African Student Accommodation Impact Investments Proprietary Limited platform.
The IFC is supporting the development and operation of at least 15,000 student accommodation units over the next five years. The project is led by Eris Property Group, a real estate developer and fund manager.
The institution plans to leverage additional resources from partner agencies to strengthen the fund manager's work in the housing sector in South Africa. "The IFC's support has advanced our aspirations to fully meet our fundraising target of R2 billion," said Vuyani Bekwa, executive director of fund management at Eris.
In November 2020, following a R500 million capital raise, Eris Property Group said it would seek additional capital over the next 12 months to "pursue a number of attractive opportunities for the company" in the real estate sector.
While student enrollment in higher education in South Africa has doubled since 1994, the IFC notes that housing supply has not kept pace. According to estimates, there is a shortage of about 500,000 beds for university and vocational school students.